KKR JV sells 6 hotels for €165m

Hotel chain group Fattal Group has signed an agreement with KKR and Dunas Capital to acquire six landmark hotels in Spain for more than €165 million ($168 million).

Located in key strategic beachfront locations on the islands of Ibiza and Mallorca, the six hotels, comprise four hotels and two apartment hotels and form part of the Alua Hotels & Resorts chain. Each has a 4-star rating.

Totaling 1,119 rooms, the hotels boast a wide range of amenities and attractions, such as pools, restaurants, bars, gyms, children’s rooms, and other recreational facilities. The hotels historically have had high seasonal occupancy rates and are seeing a steady increase in demand as guests return after the COVID pandemic.

The transaction marks the first undertaking by Fattal as part of a joint venture with institutional investors Menorah, Harel and Leumi Partners. The partnership will finance the transaction from its own sources, in addition to a loan of about €95 million